Case Law Details
Evergreen Shipping Agency India Pvt. Ltd. Vs Commissioner of Customs (CESTAT Delhi)
CESTAT Delhi held that immunity granted by the Settlement Commission to the main noticee is also available to the co-noticees. Accordingly, the impugned order is bad in law.
Facts- A common show cause notice was issued to the exporter – M/s. AKS Apparels, New Delhi proposing to hold the goods liable to confiscation in respect of 321 shipping bills to the show cause notice, with further proposal to deny the benefit under ‘Focus Market Scheme’ to recover the amount already disbursed of Rs.4,13,99,583/- with further proposal to recover the amount of duty draw back of Rs.10,53,63,846/- with further proposal to impose penalty.
Further, the present appellant – M/s. Evergreen Shipping Agency India Pvt. Ltd. was made a co-noticee along with three others. It is recorded in the impugned order-in-original, the main noticee – M/s.AKS Apparels and Shri Nitin Gupta approached the Settlement Commission, New Delhi. The Settlement Commission vide its Final Order settled the dispute finally giving immunity from prosecution, etc. This fact has been taken notice by the Court in the impugned order. However, the Adjudicating Authority considered that the dispute is settled vide the aforementioned order of the Settlement Commission only in respect of M/s. AKS Apparels and Shri Nitin Gupta, and is not settled with respect to other co-noticees including this appellant in the show cause notice. Accordingly, vide impugned order-in-original, penalty was imposed on this appeal and two other co-noticees viz. Mr. Imran Mirza and M/s. APL India Pvt. Ltd.
Conclusion- Where the importers/exporters have been granted immunity from prosecution, fine and penalty and proceedings against them have come to an end, it is discriminatory and unfair to continue the proceedings against the co-noticees.
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